On September 30, 2013, AMFA and Alaska Airlines met in accordance with the terms of Article 23, Wage Rules to initiate discussions for our annual wage review. Both sides reviewed and agreed to all data used for the review. We then started by doing an external review of our “all in” wage as compared to the seven carriers referred to in the Contract. The rates used where as of October 17, 2013, the day the contractual minimum 1.5% base wage increase would have gone into affect. Here are those all in rates, which includes base pay, license premiums, line premium, and longevity at the top of each of those scales: (1) Southwest $43.89, (2) Delta $38.28, (3) JetBlue $38.00, (4) Alaska $37.24, (5) United $36.92, (6) American $34.41, (7) Frontier $32.37, and (8) US Airways $31.98. With the all in pay rates of the carriers we are compared with, the mid point all in rate is $36.21, being our rate is above the $36.21, no additional increase above our 1.5 percent is required to keep us above mid-point.

We then went onto the internal review process due to the fact that Alaska negotiated a new Contract for one of the other labor groups on the property in the past twelve months. We are required to look at where our co-workers in the other labor groups rank compared to their peers. The rankings of the other labor groups are as follows: Pilots (ALPA) third, Flight Attendants (AFA) third, Dispatchers (TWU) third, RSA (IAM) second, COPS (IAM) third. This puts the average ranking of the other labor groups on the property at 2.83 as compared to their peers in the industry. Due to the fact our 1.5% base wage increase only puts us at the number four position we determined that an additional increase of 2.8% would be required to place us at the same relative position as our Alaska Airlines peers. This resulted in a total increase on base pay rates of 4.3% to all steps of the scale to become effective today. This increase brings our top of scale Alaska Airlines Technicians to the number three position with an all-in rate of $38.14.

Additionally, the Company indicated they would increase the Technician Helper / Janitor pay scale by the same percentage.

The hard work the AMFA National Officers, Local Airline Representatives, and staff put into compiling and analyzing the data for our annual wage review was instrumental in obtaining the additional increase. We believe this forward thinking approach and having faith in the process, is what provides the assurances our members require to commit to slightly longer contracts.